The 30-share index lost 221.29 points, or 1.19 percent, to trade at 18,336.84 with banking, realty, metal PSUs and oil and gas sector stocks leading the fall. Sensex had gained over 652 points in the previous three sessions.

Brokers said sentiments turned weak on emergence of selling after the rupee again breached 65-level by falling 104 paise to Rs 65.34 against the dollar and a weakening trend on the other Asian bourses, tracking losses in US markets.

In the Asian region, Hong Kong's Hang Seng index was down 0.24 percent, while Japan's Nikkei Index shed 0.62 percent in the morning trade on Tuesday.

The US Dow Jones Industrial Average ended 0.43 percent lower in Monday’s trade.